Vatican Removes American Bishop Over Alleged $250,000 Church Fund Theft, Misconduct in Mexico

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The Vatican has accepted the resignation of an American Catholic bishop, Emanuel Hana Shaleta, following allegations that he diverted church funds and visited a brothel in Mexico.

According to reports, the resignation of Bishop Shaleta, who led the Saint Peter the Apostle of San Diego of the Chaldeans, was approved by Pope Leo XIV on Tuesday. The decision came the same day the cleric was released from custody after meeting bail conditions set at $125,000.

In a statement, the Vatican confirmed the development, saying the pope had accepted the bishop’s resignation from the pastoral leadership of the Chaldean Catholic eparchy in the United States.

Shaleta had submitted his resignation to the pontiff earlier in January.

Authorities arrested the cleric at San Diego International Airport last Friday while he was preparing to board a flight to Germany. Reports indicate that he was found with more than $9,000 in cash at the time of his arrest.

Investigations began after the San Diego County Sheriff’s Office received a tip from a church official in August last year regarding alleged financial irregularities involving the bishop.

Prosecutors later filed 15 felony charges against him, including embezzlement, money laundering and other financial crimes. Shaleta pleaded not guilty during his court arraignment on Monday.

Investigators allege that the bishop diverted funds generated from church properties for personal use and later used charity funds to conceal the transactions. Authorities said an audit revealed at least $427,000 missing from church finances, with the total potentially reaching as much as $1 million.

Reports also claim that a private investigator linked the cleric to frequent visits to the Hong Kong Gentleman’s Club located in the Zona Norte red-light district of Tijuana, Mexico.

Despite the allegations, the embattled bishop has denied any wrongdoing.

“I have never, in my episcopal life, used any penny of the church money,” Shaleta said. “On the contrary, I have done my best to preserve and manage the donations.”